SPF not to cut starting prices for Oblenergo privatization tenders

The State Property Fund said it does not plan to lower the starting prices for blocking stakes in Poltavaoblenergo (POON) and Prykarpatoblenergo (PREN), Dmitriy Parfenenko, acting head of the SPF said yesterday. Planned tenders for Poltavaoblenergo (POON) and for Prykarpatoblenergo (PREN) were postponed due to a lack of claims. A 26.98% stake in Lvivoblenergo (LVON) was sold, because of much smaller starting price (UAH 171 mln vs POON’s UAH 308 mln and PREN’s UAH 230 mln). According to Parfenenko, potential bidders for POON and PREN stakes are waiting for a reduction in the starting prices. Alexander Paraschiy: As we wrote before, POON and PREN have the highest starting price-based P/S multiples among all the Oblenergos up for privatization. Yesterday’s claim by Parfenenko is an attempt to persuade potential buyers to participate in the tenders for PREN (tomorrow) and POON (on May 13). Still, we believe that these two tenders have a better chance of taking place only after the sales of the other three blocks on the SPF’s list (CHEON on May 14, ODEN on May 19 and SOEN on May 22).